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All Journal SOCA: Jurnal Sosial Ekonomi Pertanian
Peter McMahon
School of Life and Environment Sciences, Faculty of Science, University of Sydney, Australia
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

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Assessing Profitability Of Small-Scale Cocoa-Goat Mixed-Farming In West Sulawesi, Indonesia Abrao Pereira; Stacey Paterson; Peter McMahon; David Guest; Agus Purwantara; Jenny Ann Toribio
SOCA: Jurnal Sosial Ekonomi Pertanian Vol 15 No 1 (2021): Vol.15, No.1, 2021
Publisher : Program Studi Agribisnis, Fakultas Pertanian, Universitas Udayana Jalan PB.Sudirman Denpasar, Bali, Indonesia. Telp: (0361) 223544 Email: soca@unud.ac.id

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24843/SOCA.2021.v15.i01.p20

Abstract

Cocoa is a key crop for small-scale farmers in Sulawesi, Indonesia. Decline in cocoa yield and cocoa price fluctuation have negatively affected the income of small-scale farmers. An approach to address the sustainability of small-scale cocoa farming is to diversify the household income via cocoa-goat mixed farming. This study aimed to assess whether cocoa-goat mixed farming was a viable and profitable enterprise for small-scale farmers in West Sulawesi by using cost benefit analysis (CBA). Three CBA models were developed to compare profitability of an existing medium-scale cocoa-goat mixed farm located in West Sulawesi with hypothetical small-scale cocoa monoculture and cocoa-goat mixed farming. The CBAs were informed by an interview using structured questionnaire and literature search. The principal CBA assessment criterion was net present value (NPV) while benefit cost ratio (BCR) and internal rate of return (IRR) were supplementary. Sensitivity analysis measured the impact of changes in key parameters on profit. Over a 25-year production cycle, the medium-scale cocoa goat mixed farm is a profitable enterprise, earning an estimated profit of USD 90,403. At small-scale level, the findings suggest that engaging in small-scale cocoa goat mixed farming has potential to increase household income by 27% of profit from the cocoa monoculture.
Co-Authors Abrao Pereira Agus Purwantara David Guest Jenny Ann Toribio Stacey Paterson